The economic situation in the euro area worsened in the second quarter, according to an advance reading by the Ifo World Economic Survey (WES), though expectations for the next six months have brightened.

Scott Evans, head of equity salesat Espirito Santo Investment Bank, says the current monetary policy is creating a bubble and expects the European equity rally to be short-lived as longer term structural issues remain.

Cyprus was warned about its "excessive economic imbalances" and was told that financial assistance was "unavoidable" months before it requested aid, the vice president of the European Commission said on Wednesday.

The long-term impact of rising unemployment among the young could be felt for decades, according to the International Labor Organization, which estimates that 73.4 million young people will be out of work in 2013.

George Buckley, Chief UK Economist at Deutsche Bank thinks the Bank of England does not need to implement any more quantitative easing. Nicholas Ferres, Investment Director, Global Asset Allocation of Eastspring Investments joins in the conversation.